What is a purchase return, Basic Statistics

 

 

What is a purchase return?

A buy purchase return occurs when a buyer profits products that it has bought from a provider.

Under the regular inventory system, the cost of the products that was returned is recorded as 1) a credit score to the common journal consideration Purchase Returns or the consideration Purchase Returns and Considerations, and 2) a charge to Records Due. (The supplier/seller will record the purchase return with a charge to Sales Returns and a credit score to Records Receivable.)

The credit score stability in the Purchase Returns consideration will partially offset the charge stability in the consideration Purchases.

Since the purchase return of bought products is time intensive (and therefore costly), having the separate common journal consideration Purchase Returns allows managers to quickly see the value of the profits.

Expertsmind.com offers unique accounting assignment help

 

Posted Date: 3/31/2012 7:58:17 AM | Location : United States







Related Discussions:- What is a purchase return, Assignment Help, Ask Question on What is a purchase return, Get Answer, Expert's Help, What is a purchase return Discussions

Write discussion on What is a purchase return
Your posts are moderated
Related Questions
uses of time series with example

(a)   The bank's excess reserves are its actual reserves less required reserves. Actual reserves are given as $450 from its balance sheet. Required reserves are given by the produc


Define Average Speed in Various Cases (a) Particles covering different distances in different times say a particle covers s1 distance in time t1 ,s2 in time t2, s3 in time t3 and

Find Karl Pearson's correlation coefficient between the sales and expenses from the data given below:

This type of sampling is also known as chance sampling or probability where each and every item in the population has an equal change of inclusion in the sample and one of the poss

The ABC Company''s old equipment for making subassemblies is worn out. The company is considering two alternatives: a) Completely replacing the old equipment with new equipment b)

Generally Accepted Accounting Principles-GAAP:  GAAP is an Americanized term for the accounting standards and procedures that need to be followed by companies while compiling their


Ask question #Midifferentiate between sample and populationnimum 100 words accepted#